Starting a Proprietorship in Punjab: Shops and Establishments, PT and Trade Licence

A proprietorship doesn't need incorporation, but it does need the right registrations — and in Punjab, several of those are state and local. This guide covers what a proprietor in Punjab typically needs.

Shops and Establishments Registration

Punjab's shops and commercial establishments law applies to shops and offices in the state. Register with the Labour Department. It's one of the documents banks commonly accept as proof of your business for a current account.

Professional Tax

Punjab doesn't call it Professional Tax, but levies a State Development Tax on people earning income from professions, trades and employment. As a proprietor, you may owe it yourself, and you deduct it from staff salaries if you employ anyone. Check the current rate with the state Taxation Department.

Trade Licence

Depending on the business, a shop or office within Ludhiana, Mohali or another municipal area may need a licence from the local body. It's tied to your premises and usually renewed every year.

GST

Register for GST once your aggregate turnover crosses the threshold. In Punjab, the threshold is ₹40 lakh for goods and ₹20 lakh for services. Register earlier if you make inter-state supplies of goods or sell through e-commerce platforms.

Udyam

Udyam registration is free and gives you MSME status, with protection on delayed payments and access to the Punjab Micro and Small Enterprises Facilitation Council.

Sector Licences

• Food businesses: FSSAI registration or licence.
• Pharmacies: drug licence from the state drugs control authority.
• Importers and exporters: IEC.

Bank Account

With two registrations in the business's name — for example, Shops and Establishments and Udyam, or GST — you can open a current account in your trade name.

A Checklist for Proprietors in Punjab

1. Register under the shops and establishments law.
2. Check your State Development Tax position.
3. Get a trade licence from your local body.
4. Register for GST when you cross ₹40 lakh for goods or ₹20 lakh for services, or earlier if required.
5. Get Udyam registration.
6. Open a current account in the trade name.

Getting Help

Think Filing sets up proprietorships in Punjab with all the state and local registrations they need.